Sustainable infrastructure is key to reduce greenhouse gas emissions and combat climate change. However, we are significantly underfunding important projects such as renewable energy and climate adaptation infrastructure.

This is caused, at least in part, by shortcomings of the traditional financial system. Project developers seeking equity or debt financing are buried under numerous layers of intermediaries, trimming layers of fees in the process, before investor funds can be accessed. It is also difficult for investors in Environment, Social and Governance (ESG) assets to access the specific impact and performance data of projects at a local level. Such information is either not available at all or requires communications between bloated layers of intermediaries.

In other words, the traditional system of sustainable finance is inefficient, opaque and limited, raising the cost of capital for projects seeking funding and reducing the return for investors.

Decentralized Finance (DeFi) offers an opportunity to upgrade our current traditional financial system with composability, efficiency, and transparency.

DeFi encodes financial value with lines of code that sits openly at the blockchain. This allows infinite potential for composability such as secondary liquidity, structured products, and capital efficiency. By default, the open nature of DeFi enables more transparency and regulatory compliance. It also improves data security, analytics and privacy.

The ESG asset management industry manages over $100 billions worth of assets. Further, the securitization market is worth trillions. DeFi is a promising technology that delivers great value for participants in the capital markets, while accelerating the world’s transition towards net-zero emission.

And we are not alone on our journey. The industry is slowly waking up to the true potential of DeFi to deliver great value for projects seeking finance and investors deploying capital. The largest investment bank in the world, J.P.Morgan, is committed  to tokenize trillions worth of real world assets on blockchain, revolutionizing how financing is done. HSBC has highlighted  the use of DLT to drive efficiency by 10 times. The Bank of International Settlement is issuing green bonds  with Hong Kong’s central bank, the Hong Kong Monetary Authority.

To onboard real-world assets to DeFi at scale and to tackle adverse selection, the industry needs a standard.

Here at Frigg, we have developed the Frigg Standard, a suite of compliance, financial and technical workflow that allows investors and project developers easy access to the asset class.

Our software empowers Issuers to connect directly with Investors that seek access to sustainable projects with measurable impact at the asset level. It equalizes the playing field for all investors and asset owners, which leads to higher capital efficiency that accelerates the development of sustainable projects.

Our vision is for the Frigg Standard to serve as the golden standard for securitizing sustainable projects using blockchain- and Internet-of-Things (IoT) technology. Let’s use blockchain for good, starting with the Frigg Standard.

Our solution is a Software-as-a-Service (SaaS) platform that empowers sustainable infrastructure developers to issue digital securities in the form of bonds.

We set a regulatory compliant investor relations page (the “Microsite”) where investors can evaluate tokens on offer and execute buy-/sell-orders. Issuers use the proceeds from Investors to develop new sustainable infrastructure assets, whereas Investors receive stable cash flows from their claims against the sustainable infrastructure asset.

We link the Microsite with our own WebApps, the Frigg Universe and Frigg Globe, which altogether create the Frigg Trinity. 

The Frigg Universe is the homepage of Frigg, providing an overview of the different assets available and the Issuers that we work with.

The Frigg Globe is a “Google Earth” style satellite imagery perspective of issuer assets and each asset’s relevant sustainability metric portfolio. It presents investors with real-time data about the assets (e.g., produced electricity, carbon avoidance).

The Microsite is the issuer’s domain. It includes

• Detailed information about the asset backed security such as 
• financial reports, and legal documents (eg. Registration- and Terms of Issue)

• Operational performance data (eg. produced electricity and emissions avoided) that can be used by investors to calculate (real-time) asset revenue

• Governance framework (Investor registration/authentication, Know-Your-Customer (KYC) / Know-Your-Business (KYB) / Anti-Money-Laundering (AML)

• Ability to buy and sell tokens in a liquid secondary market supported by a decentralized exchange

Successful transition to net zero must entail radical transparency to fight against greenwashing.

We are one of the first platforms that publish real time project data in public. We work with sustainable infrastructure developers to install Internet-of-Tings (IoT) devices to assets. These feed real-time project statistics, e.g. clean electricity generation and carbon avoidance, that are published on the Issuer’s Microsite.

We have also designed a series of requirements that Issuer comply as a condition for working with Frigg. We uphold the highest standards of Environmental and Social Requirements for any renewable projects that we list on our Microsites.